How to Boost Telco Profitability Through Generative AI today

May 3, 2024
While many business sectors are seeing benefits from today’s advanced technologies, telcos are uniquely positioned to take advantage of the tech revolution, especially from artificial intelligence (AI). In this article we explore how AI is reshaping the telco industry, bridging the gap between perception and reality, and paving the way for a smarter, more efficient future.

Telcos have already begun implementing AI tech into their networks and are now, with the excitement around generative AI with the Open AI’s GPT-4 launch, finding opportunities to improve the customer experience beyond 5G network upgrades. AI-driven processes like optimization, troubleshooting, and monitoring are gaining traction, yet many telco professionals still underestimate their current AI integration. How to truly apply AI in business operations remains ambiguous, leading to a disconnect between the technology's capabilities and its recognition.  

Many tools in use already leverage AI in ways that go unnoticed and have become perceived as simple gadgets rather than AI-driven devices. As AI technologies become commonplace, they lose their novelty and blend into everyday operations. Understanding and embracing the full scope of AI's potential is essential for telcos to drive innovation and efficiency in today's competitive landscape.  

AI itself has proven to be a technology with significant anticipated demand as evidenced by the stock growth of NVIDIA, the chip maker at the center of AI (especially gen AI) advancements.  “The Global AI In Telecom Market size is expected to be worth around USD 23.9 Billion by 2033, from USD 1.8 Billion in 2023, growing at a CAGR of 29.5% during the forecast period from 2024 to 2033.”

Let’s look at some of the ways AI and gen AI technologies are beginning to impact the telecommunications industry.

AI in Sales and Marketing

With the launch of ChatGPT, the sales and marketing world has been at the forefront, quickly testing new marketing ideas using generative AI.  This includes automating content creation, personalizing and customizing messages based on customer data, and incorporating natural language into chatbots.  Some telcos are even bringing it a step further, taking an active role in their customers’ daily interactions.

SK Telecom launched its AI chatbot, “A.” designed to not just answer questions like ChatGPT, but to also point customers to services such as music streaming and e-commerce sites.  The goal is to enhance personalization and even extend it to daily utility, exploring new ways to strengthen customer connections and reduce churn.

Enhancing Customer Service with AI

Customer inquiry resolution is a key factor in the customer experience.  A good interaction can repair a relationship and ensure a long-term happy customer.  A bad one, due to long wait times, or a negative experience with a customer representative, can lead to not just churn of that one customer, but also lead to that customer telling their friends about the negative interaction, and loss of future revenue.

Reducing wait times is one way to solve many of the wait time problems.  Chatbots are one way to handle high volumes of customer questions without tying up limited human resources.  The chatbots can handle questions that occur often or can be handled with a straightforward, formulized response.  AI can help determine which responses are needed and uncover situations where a better answer is needed, or a customer service agent conversation is necessary.  However, the benefits extend far beyond that. With advanced chatbot technology, interactions with customers can be highly personalized like never before. Equipped with instant access to a customer’s entire history, telecom service providers can now make a remarkable first impression. Picture this: the next time a customer contacts you, you could instantly greet them by name and proactively address their needs, displaying knowledge about their account and speedy response.  This level of tailored service not only enhances customer satisfaction but also significantly reduces churn.

Jio Haptik launched its generative AI based system, Contakt, integrated with advanced language models such as GPT-3.5.  It is capable of “improving bot performance by up to 15%, reducing AI training efforts by around 40%, and boosting customer satisfaction by 20%," according to Haptik’s CTO & Co-founder, Swapan Rajdev.

Improved Inquiry Resolution

Call centers are departments that have tremendous opportunities for improvement with AI.  Airtel is using AI-powered speech analytics in its contact centers that process over 100 million calls each year.  The speech recognition algorithm runs on 84% of incoming calls and is used to identify anomalies that should be addressed, such as customer on hold time, where a service agent may need additional training.

Agent Onboarding Effectiveness/Speed

An experienced customer service agent can resolve problems for customers quickly, smoothly, and leave them satisfied, something critical to call center success.  However, newer agents and less-skilled ones, can have the reverse effect, causing frustration and, ultimately, churn.

Generative AI has been shown to successfully improve customer service inquiry interactions.  In a study of 5,179 customer support agents, issues resolved per hour, utilizing a generative AI-based conversational assistant, improved an average of 14% (34% with novice and low-skilled workers).


While AI, especially gen AI, has already shown significant results in customer acquisition and customer service, utilizing AI in other operational aspects of a telco’s business is also showing promise.

Contract Pricing

With pricing and contract package models under constant competitive pressures in the telecommunications industry, telcos need to be swift and nimble to stay ahead of the competition.  While implementing Configure Price Quote (CPQ) applications help improve pricing structures and guide new offers to customers, implementing AI into CPQ systems will be the next iteration.

Technician Dispatch

Anywhere you have repetitive human tasks you have an opportunity to integrate AI functioning to improve it.  AT&T has found this with dispatching technicians for troubleshooting and cell site maintenance.  Using artificial intelligence and machine learning, field tech utilization can be evaluated, and schedules optimized based on network need, commute traffic data, dispatch timing, and route selection.  AT&T has been able to reduce miles travelled by 7% and boosted productivity by 5%.

Fleet Management

Verizon has taken AI to fleet management with “Fleet” and “Reveal” apps.  These telematics systems use AI and dual cameras to provide real-time data and insights that are used to improve driver performance and reduce risks.  One case study indicated savings of $200,000 by countering false insurance claims with dashcam footage.  Another one showed an 87% reduction in annual accidents.

Network Operations

Deutsche Telekom uses AI and ML technologies to improve RAN performance in a way more static metric models cannot.  Vodafone is using similar technologies to quickly detect and correct anomalies before they become customer impacting.

AI Integration

AI in sales and marketing, customer service, and overall telco operations are already proving their worth. Integrating AI technologies into multiple areas can make adoption of AI tech much more compelling.

triPica is bringing AI advancements to its telco customers (both large and small) as these customers focus their efforts on building cost efficient digital brands that use technology rather than employee counts to scale their businesses.

triPica's AI driven BSS improves the customer journey - from tailored marketing messages to pro-active best data and voice mobile plan recommendations custom-tailored to each customer utilizing ChatGPT natural language generative AI, and ChatGPT augmented chatbots that deliver a much more effective customer experience.

triPica can accomplish this with its open architecture that is easily integrated with third-party technologies that are constantly being developed.  triPica’s customers can reap the benefits without having to become experts in the tech itself.  triPica handles that for them.

To find out more about how your telco business can benefit from triPica’s AI driven BSS, contact us today.

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